Danone, the owner of popular brands Activia and Evian, has introduced a “global strategic partnerships programme” aimed at nurturing stronger relationships with suppliers, start-ups, and institutions. In an effort to move away from transactional arrangements, Danone’s Partner for Growth initiative aims to capitalize on consumer trends to drive growth opportunities for both Danone and its partners.
The initiative kicks off by signing a joint business development plan with Danish ingredients company Chr. Hansen, with a focus on accelerating progress in the plant-based and dairy product categories. Through this collaboration, Danone plans to leverage Chr. Hansen’s expertise in bio-solutions and culture collections to push the boundaries of innovation.
In addition to the partnership with Chr. Hansen, Danone has also secured three new supplier agreements, aiming to triple this number by year-end. Danone Manifesto Ventures, the company’s corporate venture arm, will play a role in bringing emerging brands, concepts, and capabilities to the market.
Looking beyond suppliers, Danone seeks collaborations with start-ups and academic institutions. The Partner for Growth programme is built on four interconnected strategic pillars that aim to unlock growth opportunities:
- Exploring emerging science and technology to discover breakthroughs in ingredients, agriculture, processes, and packaging.
- Utilizing technology and best practices to enhance efficiency, reduce waste, and optimize logistics.
- Engaging in strategic partnerships and open innovation to foster shared business growth.
- Preparing brands and categories for sustainable long-term growth through a structured, holistic approach.
Vikram Agarwal, Danone’s Chief Operating Officer, described the programme as a structured and mutually-beneficial approach that not only seizes short-term opportunities but also prepares for long-term growth. Agarwal emphasized the importance of leveraging the supplier and partner ecosystem to drive shared business growth, moving away from traditional linear approaches.
In the first half of 2023, Danone recorded a 6.3% increase in sales, reaching €14.17bn ($15.2bn), with an 8.4% like-for-like increase. Recurring operating income stood at €1.73bn, up 7.6% YoY (5.8% like-for-like), resulting in a 12.2% recurring operating margin. Danone expects a 4-6% rise in like-for-like sales for the year and a moderate improvement in the recurring operating margin.
To stay up-to-date with the latest food and beverage industry trends, and to learn more about the Partner for Growth programme and the evolving food and drink consumer trends, visit our website.